Samyang Foods has surpassed a market capitalization of 10 trillion won for the first time. The stock price is soaring amid the unquenchable popularity of spicy chicken ramen.
According to the Korea Exchange on the 29th, Samyang Foods' market capitalization exceeded 10 trillion won, reaching 10.49 trillion won as of the closing price on the 27th.
The closing price that day was 1,334,000 won, marking double the level of a year ago. It has increased by more than 30% since crossing the 1 million won mark for the first time on the closing price on the 16th of last month, after just over a month of being termed a 'blue-chip' stock. Samyang Foods ranks 54th on the KOSPI, similar to Doosan and Hyundai GLOVIS.
The strong performance of Samyang Foods' stock price is thanks to its earnings growth. Recent consensus estimates from securities firms that released reports in the past month predict that Samyang Foods' second-quarter revenue will reach 554.6 billion won, an increase of 30.7% compared to the same period last year.
During the same period, operating profit is expected to surge by 51.1% to 135.2 billion won. With over 80% of Samyang Foods' revenue coming from overseas, the supply shortage of spicy chicken ramen in countries like the United States and China is raising performance expectations even higher.